This article is out of the UK so has little bearing on us over here in North America, however, if this actually became fact do you think more people would purchase EV's? For me the big question is bringing down the cost of the battery (well the battery itself needs to be revamped as it is the least efficient item of the EV overall. Lots of research is going into this but so far nothing concrete has changed in this area. This is a highly generalized statement in regards to the battery I know but I'm not going into detail on the battery function from grave to finished product. So much relies on the battery pack)This also isn't the only article out of Europe that is predicting this - it is one of a handful.

he cost of owning an electric car will fall to the same level as petrol-powered vehicles next year, according to bold new analysis from UBS which will send shockwaves through the automobile industry.

Experts from the investment bank’s “evidence lab” made the prediction after tearing apart one of the current generation of electric cars to examine the economics of electric vehicles (EVs).

They found that costs of producing EVs were far lower than previously thought but there is still great potential to make further savings, driving down the price of electric cars. As a result, UBS forecasts that the “total cost of consumer ownership can reach parity with combustion engines from 2018”, with this likely to happen in Europe first.

“This will create an inflexion point for demand,” the analysts said. “We raise our 2025 forecast for EV sales by ~50pc to 14.2m - 14pc of global car sales.” As a result, UBS forecasts that the “total cost of consumer ownership can reach parity with combustion engines from 2018”, with this likely to happen in Europe first.

“This will create an inflexion point for demand,” the analysts said. “We raise our 2025 forecast for EV sales by ~50pc to 14.2m - 14pc of global car sales.” The 2017 car - which cost $37,000 - was taken apart piece by piece and the parts analysed. UBS said that the Bolt’s electric drive was $4,600 cheaper to produce than thought, “with much cost reduction potential left”.

“We estimate that GM (which produces the Bolt) loses $7,400 in earnings before interest, and tax on every Bolt sold today, mainly due to a lack of scale.”

Tesla’s highly anticipated Model 3 - another small electric vehicle - is expected to lose billionaire Elon Musk’s company $2,800 per car for the base version, according to UBS, but Tesla will break even at an average selling price of $41,000.

The bank predicts this will be achieved as customers opt for higher specification vehicles, making electric cars a viable business proposition, with upmarket EVs likely to be more profitable than mid-range versions.

“Once total cost of ownership parity is reached, mass-brand EVs should also turn profitable,” UBS said. Although the costs of EVs and current cars will be the same for motorists by 2018, manufacturers will not reach parity until 2023, when they will make 5pc margins on EVs - about equal to the profit on current vehicles.

EVs matching the cost of conventionally fuelled cars sooner than expected will send a seismic shock throughout the sector, from manufacturers right down through their supply chains, with UBS warning “the 'time to get ready' and win in the space shrinks”.

It also warns that the aftermarket for replacement parts could be radically disrupted because electric drivetrains suffer less wear than traditional engines.

“Our detailed analysis of moving and wearing parts has shown that the highly lucrative spare parts business should shrink by ~60pc in the end-game of a 100pc EV world, which is decades away,” UBS said.